Full Cost Accounting for Solid Waste Management September 2015 for the town of Lisbon

Full Cost Accounting for Solid Waste Management

September 2015

for the town of Lisbon

What is Full Cost Accounting? A system developed by the US EPA Not a strict accounting system A systematic approach for identifying

and characterizing the cost of providing solid waste services

Includes operating costs, depreciation, amortization, and indirect costs.

Inputs

Upfront Backend

OperatingDirect Indirect+

Town accounting system Annual report Supervisor interview Facility tour Annual Facility Report

Data Sources

OutputsRecycle Compost W-T-E Landfill

Total Cost $$$ $$ $ $$$$$Less Revenue

$ $ $$$

Net cost $$ $$ 0 $$Tons X Y Z W

Net $/ton $/ton $/ton $/ton $/ton

Costs per Solid Waste Path

GENERAL SUMMARYLisbon’s overall net costs per ton are below average. (third lowest)

Recycling net costs per ton were the highest of towns studied to date.

Landfilling net cost per ton is the lowest of towns studied to date.

Overall results

LandfillingWaste-to-

Energy Recycling Composting$ $ $ $

1 Total Costs 278,494$ 140,265 - 138,229 -

2 Revenues 133,893 107,350 - 26,543 -

3 NET COSTS 144,601$ 32,915$ -$ 111,686$ -$

4 Tons Processed 1,162 984 - 177 -

5 Net Cost, $/Ton 124.48$ 33.44$ -$ 629.57$ -$

6 Household Units Served 1,143 1,143 1,143 1,143 1,143

7 Net Cost Per Household 126.51$ 28.80$ -$ 97.71$ -$

Costs by Waste PathOverall Costs

($)

Full Costs by Category

Wages and Benefits (Form 1)

34%

General O&M (Form 2)

44%

Depreciation of Capital

Assets (Form 3)

7%

Amortization of Future Outlays (Form 4)

10%

Indirect Costs (Form 5)4%

Contributing Cost Factors Significant labor effort in recycling path. Low tonnage of recyclable, and

corresponding low revenue. Charges for MSW and C&D generated

excellent revenues. Indirect Costs contributing 4.5% of total

at $12,437.

How does Lisbon compare?

TownPop-

ulationAnnual

Tonnage

Net Cost per Ton for MSW Paths

Recycling Compost** W-t-E Landfill Overall

Berlin 10,051 5,555 $ 316.20 - - $ 173.04 $ 186.35

Carroll 763 685 $ 228 $ 363 - $ 319 $ 269

Gorham 2,848 2,332 $ 565.19 $ 239.91 - $ 135.96 $ 209.86

LISBON 2,629 1,165 $ 629.57 - - $ 33.44 $ 124.16

Littleton 5,828 1,807 $ 61.93 $ 207.90 - $ 123.88 $ 112.58

Plymouth 6,990 1,628 $ 147.29 $ 148.13 - $ 222.49 $ 199.21

Warren 904 749 $ 53.85 - - $ 39.79 $ 48.67

AVERAGE COSTS $ 285.85 $ 239.81 n/a $ 149.67 $ 164.90

Recycling Operations 61 man-hours per week involved with

recycling effort (77%) of labor time More “offline” labor time than other

towns studied – 2 full days. This equates to $ 526/ton ! Revenues were only $8,032 at transfer

station (approx.. $5,062 for C&D)

Recycling Picture

TOWN

TONS RECYCLE

DRecycling

Rate

SALE OF RECYCLEABLES REVENUE $/TON

CARROLL 375 55% 11,990 $ 32

Lisbon 177 18% 24,420 $ 138

Littleton 850 48% 102,969 $ 132

Plymouth 625 39% 88,070 $ 140

Recommendations Increase detail in revenue reporting Work to increase recycling rate AND

efficiency in processing Consider change in operations. Consider single-stream/dual-stream

recycling

Strategy Ideas Reduce operator load Check weights

Alternative ScenariosScenario Overall Landfill W-T-E Recycling Composting

Current program

124.15$ 33.44$ -$ 629.57$ -$

1 - Reduce 2nd operator to P/T @ 32hr/wk

107.60$ 33.44$ -$ 520.81$ -$

2 - Switch to dual-stream recycling

122.63$ 33.44$ -$ 619.48$ -$

3- Double recycling rate

85.74$ 40.78$ -$ 189.08$ -$